# Assume that firms in an oligopoly are currently colluding to set price and output to maximise total industry profit. If the oligopolists are forced to stop colluding, the price charged by the oligopolists will _____ and the total output produced will _____ ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: Assume that firms in an oligopoly are currently colluding to set price and output to maximise total industry profit. If the oligopolists are forced to stop colluding, the price charged by the oligopolists will _____ and the total output produced will _____ ? Correct Answer: C. decrease; increase. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

---

Tested in Competitive Exams:

- [NTS Test Prep](https://test-prep.blog/exams/nts)
- [FPSC Past Papers](https://test-prep.blog/exams/fpsc)
- [PPSC Solved MCQs](https://test-prep.blog/exams/ppsc)
- [PMDC MDCAT 2026](https://test-prep.blog/exams/mdcat)
- [UET ECAT Prep](https://test-prep.blog/exams/ecat)
- [CSS Central Superior](https://test-prep.blog/exams/css)

- [Economics Mcqs](https://test-prep.blog/categories/economics-mcqs)
Difficulty: Moderate 63% Accuracy

# Assume that firms in an oligopoly are currently colluding to set price and output to maximise total industry profit. If the oligopolists are forced to stop colluding, the price charged by the oligopolists will _____ and the total output produced will _____ ?

Direct Answer & Quick Reference

The correct option is **C. decrease; increase**.

A. decrease; decrease

B. increase; decrease

C. decrease; increase **(Correct Answer)**

D. increase; increase

✨ Explain with AI

Verified Key: C. decrease; increase
Solved by 1,638+ students

Verified against official examination board answer keys and standard curriculum textbooks.

- [Previous Question The World Bank classifies countries into four groups. This classification is based upon:](https://test-prep.blog/mcq/the-world-bank-classifies-countries-into-four-groups-this-classification-is-base-8bb589e9-b9c0-41d7-b271-8c23bba7451c)
- [Next Question Automatic stabilizers are one of the _____ policy tools.](https://test-prep.blog/mcq/automatic-stabilizers-are-one-of-the-policy-tools-1586d9a0-f8b5-4c77-b48d-db492aec26a1)

- [Practice More Economics Mcqs MCQs](https://test-prep.blog/quiz/smart?category=economics-mcqs)
- [How We Verify Questions →](https://test-prep.blog/editorial-policy)

## Subject Overview

Explore thousands of solved past paper MCQs for Economics Mcqs categorized with explanations.

- [Browse All Economics Mcqs MCQs →](https://test-prep.blog/categories/economics-mcqs)

## Related Questions

- [The World Bank classifies countries into four groups. This classification is based upon:](https://test-prep.blog/mcq/the-world-bank-classifies-countries-into-four-groups-this-classification-is-base-8bb589e9-b9c0-41d7-b271-8c23bba7451c)
- [Automatic stabilizers are one of the _____ policy tools.](https://test-prep.blog/mcq/automatic-stabilizers-are-one-of-the-policy-tools-1586d9a0-f8b5-4c77-b48d-db492aec26a1)
- [Increase in supply of money will positively affect:](https://test-prep.blog/mcq/increase-in-supply-of-money-will-positively-affect-a3edbc22-9144-4668-b4c3-4932e7b4dc55)
- [The relationship between inflation and unemployment is represented by:](https://test-prep.blog/mcq/the-relationship-between-inflation-and-unemployment-is-represented-by-c31075ef-a94e-4bb2-b6b6-ee62d4b45dc4)
- [Which of the following is not a component of GDP?](https://test-prep.blog/mcq/which-of-the-following-is-not-a-component-of-gdp-cffa15fa-914c-4546-b0a2-439f891ad6e0)

---
*Source: https://test-prep.blog/mcq/assume-that-firms-in-an-oligopoly-are-currently-colluding-to-set-price-and-outpu-dfa3d0a6-1082-4518-93a6-7c402433db5c*
*Format: Markdown for Agents (Content Negotiation: text/markdown)*
